Kempen European High Dividend Fund N.V. - Class N

Profile

Kempen European High Dividend Fund N.V. (KEHDF) offers a diversified portfolio of European listed companies with an expected dividend yield of 2.75% at the time the company purchased for the first time. KEHDF invests in companies that are listed or do business in geographical Europe including Eastern Europe and Russia. The portfolio contains around 55 investments, which are approximately equally weighted.

The performance track-record of KEHDF is based on the Orange European Large Cap Fund until ultimo February 2007 including the corresponding benchmark
(Dow Jones STOXX 50 Index). As of February 2007 the return data of KEHDF with the current benchmark are shown.
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Fund characteristics per 2018-07-31

Slide to see more

Fund

Benchmark

Number of holdings

54

447

Dividend yieldi

4.68%

3.34%

Weighted average market capitalizationi

EUR41,018M

EUR66,505M

P/E ratioi

12.34

14.89

Active sharei

83.42%

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Market developments per 2018-07-31

In July, European markets rose. Despite worries about the trade wars, companies in general reported strong quarterly results helping to lift the overall stock market. KEHDF performed in line with the market, and is slightly trailing the market on a year to date basis.

Our performance was negatively impacted by allocation effects but this was more than offset by strong stock selection. Sector allocation was the weakest in healthcare, that performed well in July. KEHDF is underweight in healthcare. MedioBanca, an Italian bank was our best performer. Strong results and reduced worries surrounding Italy helped to re-rate the shares. Another bank, Svenska Handelsbanken also reported strong results. Publicis was our weakest performer for the month. Publicis reported a slight decline in revenues. Although margins are either stable or expanding, the low growth increases fears of disruption. While the media-landscape is changing significantly, we believe marketing agencies will remain needed for creative work and managing a complex set of media channels.

Portfolio developments per 2018-07-31

Strategies that are value oriented have had difficulty keeping up with the market so far, this year. Relative to the market, value stocks have gotten more attractive this year. Our portfolio trades at only 12.6x earnings, based on the last twelve-month earnings. This compares to the MSCI Europe Index trading at an earnings multiple of almost 16x. We donâ€™t know when this will reverse, but we do know what we are buying. In the long run stock returns should reflect the earnings stream of a business. We believe our current portfolio is now priced to deliver strong long-term returns. On a portfolio level we expect earnings growth, but even if this does not materialize, long-term returns should be satisfactory.

Our focus is on finding companies with sustainable dividends that can be bought at a discount to our estimate of intrinsic value. We base our estimate on the Earnings Power Value (EPV) framework of the Columbia Business School. EPV allows us to separate the three valuation components: asset value, earnings power and growth value. This framework improves our ability to analyze what we are paying for, and gives insight into whether a stock is priced with a margin of safety.

KEHDF now has a forward yield of around 5.1%. We remain optimistic on the dividend growth prospects for 2018.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

The performance track-record of KEHDF is based on the Orange European Large Cap Fund until ultimo February 2007 including the corresponding benchmark
(Dow Jones STOXX 50 Index). As of February 2007 the return data of KEHDF with the current benchmark are shown.
Performance is shown after deduction of ongoing charges and including the reinvestment of dividend that has been paid out. The value of your investments may fluctuate. Past performance provides no guarantee for the future.
The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Dividends

The dividend distribution of KEHDF (ex-date 01-08-2018) is included in the NAV per 31 July 2018 and is therefore included in the performance figures of July.

Risk analysis (ex post) per 2018-07-31

Slide to see more

3 years

Since inception

Maximum drawdowni

-14.02%

-56.33%

Tracking errori

2.69%

2.96%

Information ratioi

0.08

0.07

Betai

0.87

0.93

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Ongoing charges

Slide to see more

Management feei

0.63%

Service feei

0.10%

Expected ongoing chargesi

0.78 %

Ongoing charges last financial yeari

0.78%

The service fee has been reduced by 0,05% as of 30 September 2017. The expected ongoing charge factor is therefore also reduced by 0,05%. The Ongoing Charges Figure of the last financial year relates to 2016/2017.

The service fee is determined annually on basis of the net asset value as of the last day of the previous financial year: < or equal to EUR 200 million: 0.20% Between EUR 200 million and EUR 700 million: 0.15% >EUR 700 million: 0.10%

Other costs

Slide to see more

Upward swing factor i

0.40%

Downward swing factori

0.15%

As of 1 January 2018 the swing factor has been adjusted from 0.30%/0.30% to 0.40%/0.15%.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Tradability

Slide to see more

Listed

yes, listed on the NAV Trading Facility of Euronext

Subscription/Redemption Frequency

Daily

ISINi

NL0000293348

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

Formal documents other

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.

KCM Vision

Kempen Capital Management is an asset manager with a long-term investment approach.
We strongly believe in engaged shareholdership that benefits all stakeholders. As
a long-term responsible investor, we firmly believe that active ownership and
shareholder engagement contribute to positive change across the board.

Our KCM wide approach to responsible investment

To put our vision into action we engage with our investment targets on a wide array of strategic, financial,
environmental, social and governance (ESG) topics. Our long-term investment worldview paired with thorough
analysis and an experienced and diverse ESG team allow us to use both voting and engagement as means to
consistently encourage positive change. Through this process of constructive engagement, we are able to
contribute to the development of principles and standards of corporate responsibility within companies that
we invest in. Our full voting records are available here.

Our fund approach to Responsible Investment

ESG is integrated in our investment process.

Portfolio managers (PM's) have access to ESG research via the database from MSCI ESG Research and via FactSet.

Prior to investment, our PM's assess the ESG performance of the company. If material ESG concerns are identified, this can result in the decision to quantify the ESG risks into the investment model, to engage with a company or to avoid investment.

In case of engagement, the PM and the Responsible Investment Department will start a dialogue with the company. The aim of the engagement is to use our influence as a shareholder to encourage positive change.

During the quarterly re-balancing process the PM's monitor the ESG performance of the holdings.

Kempen Capital Management N.V. (KCM) is the management company of Kempen European High Dividend Fund N.V. (the Fund). KCM is authorised as a management company and regulated by The Netherlands Authority for the Financial Markets. The Fund is registered under the license of KCM at The Netherlands Authority for the Financial Markets.

The information in this document provides insufficient information for an investment decision. Please read the Key Investor Document and the prospectus. These documents are available on the website of KCM (www.kempen.com/investmentfunds). The value of your investment may fluctuate. Past performance provides no guarantee for the future.